Saudi Arabia has Approved Key Amendments to Car Rental and Rental Broker Regulations.

A key change clarifies the definition of “reservation,” aligning it with the digital booking process.

Financial requirements now include a SR100,000 guarantee for rental companies, with exemptions for entrepreneurial establishments to support small businesses.

The removal of restrictions on renting cars with a driver and the elimination of hourly rentals offer greater flexibility.

The minimum rental duration with a driver is now set at six hours.

New penalties enforce compliance, requiring rental companies to provide proof of vehicle receipt when contracts remain open due to financial obligations, with a SR1,000 penalty for non-compliance.

Contracts must be issued through the designated electronic system, with a SR4,000 fine for violations.

Reporting stolen vehicles now terminates the rental contract, with a SR3,000 fine for non-compliance.

Operating with an expired licence incurs a SAR5,000 fine, and requiring tenants to sign additional documents beyond the official contract results in a SR3,000 fine.

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